- Suzano’s 1Q net income is significantly lower than expected, at R$220.0 million, a 96% decrease from last year. The estimate was R$1.66 billion.
- The company’s net revenue also fell short of estimates, at R$9.46 billion, showing a 16% decrease y/y. The estimate was R$10.09 billion.
- Pulp sales declined by 2.2% y/y to 2.40 million tons, missing the estimate of 2.57 million tons.
- The average pulp price per ton was $3,066, reflecting a decrease of 18% from the previous year.
- Paper sales, however, increased by 12% y/y to 313,000 tons.
- The average paper price per ton sold in the domestic market was lower than projected at R$6,713, showing a decrease of 9.4% y/y against the estimate of R$6,850.
- Suzano’s Adjusted Ebitda was R$4.56 billion, a 26% decrease y/y from the estimated R$4.85 billion.
- The Adjusted Ebitda margin was at 48% compared to 55% y/y.
- The net debt to adjusted Ebitda ratio increased significantly by 89% y/y to 3.6 times
- The cellulose market showed a favorable performance during the first quarter of 2024, leading to new round of price increases not fully captured by the results of this period.
- The company’s shares are regarded as a ‘buy’ by 14 investors, a ‘hold’ by 3 investors, and a ‘sell’ by 1 investor.
A look at Suzano Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investors looking at Suzano can expect a positive long-term outlook based on its Smartkarma Smart Scores. With a strong score in Growth and Momentum, Suzano is positioned for expansion and market momentum, pointing towards a promising future for the company. Though the scores for Value, Dividend, and Resilience are not as high, the overall outlook remains optimistic for Suzano.
Suzano S.A., a company focused on sustainable solutions from renewable resources, including cellulose, hygiene, lignin, eucalyptus, and paper products, is positioned favorably for growth and market momentum. While not all Smart Scores are at their peak, Suzano’s strong performance in Growth and Momentum bodes well for its future prospects in serving a global client base with innovative and sustainable solutions.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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